Laboratory Corporation of America Holdings (LH)
Payables turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 9,384,500 | 9,163,300 | 8,991,300 | 8,888,300 | 8,796,700 | 11,053,100 | 10,828,100 | 10,617,100 | 11,096,100 | 9,308,900 | 10,005,400 | 10,600,800 | 10,496,600 | 10,400,400 | 10,060,000 | 9,492,400 | 9,025,700 | 8,573,500 | 8,348,000 | 8,396,600 |
| Payables | US$ in thousands | 875,800 | 660,900 | 760,600 | 695,500 | 827,500 | 690,600 | 713,100 | 880,700 | 852,200 | 765,500 | 754,700 | 623,600 | 621,300 | 669,400 | 599,900 | 621,300 | 638,900 | 639,500 | 534,100 | 568,700 |
| Payables turnover | 10.72 | 13.86 | 11.82 | 12.78 | 10.63 | 16.01 | 15.18 | 12.06 | 13.02 | 12.16 | 13.26 | 17.00 | 16.89 | 15.54 | 16.77 | 15.28 | 14.13 | 13.41 | 15.63 | 14.76 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $9,384,500K ÷ $875,800K
= 10.72
The payables turnover ratio measures how efficiently a company is managing its accounts payable by comparing the amount of purchases made on credit to the average accounts payable outstanding during a period. For Laboratory Corporation of America Holdings, the payables turnover ratio has fluctuated over the periods provided:
- The ratio ranged from a low of 10.63 on December 31, 2023, to a high of 17.00 on March 31, 2022.
- The company's payables turnover generally increased from the end of 2023 to mid-2022, indicating that LabCorp was able to pay off its suppliers more frequently during this period.
- However, from June 30, 2022, to December 31, 2024, there was a decline in the payables turnover ratio, indicating a slowdown in the rate at which LabCorp was able to settle its accounts payable.
- It is worth noting the significant drop in the payables turnover ratio from 16.01 on September 30, 2023, to 10.63 on December 31, 2023, which may signify delays in payment to suppliers or changes in the company's payment terms.
- Despite the fluctuations, LabCorp has maintained a generally healthy payables turnover ratio, suggesting that the company has effectively managed its accounts payable overall.
In summary, while there have been fluctuations in Laboratory Corporation of America Holdings' payables turnover ratio, the company has shown efficiency in managing its accounts payable, although there were periods of slower payment to suppliers. Further analysis and comparison with industry benchmarks may provide additional insights into the company's financial management practices.
Peer comparison
Dec 31, 2024